CARSON CITY, Nev. - BioVie Inc. (NASDAQ: BIVI), a clinical-stage biopharmaceutical company, has announced the pricing of its registered direct offering. The company is offering 1,146,000 shares of common stock at a price of $2.83 each, aiming to raise approximately $3.2 million in gross proceeds. The offering, which is priced at-the-market under Nasdaq rules, is anticipated to close on October 29, 2024, with ThinkEquity acting as the sole placement agent.
The proceeds from this offering are expected to be used for working capital and other general corporate purposes. This sale of shares is made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed with the U.S. Securities and Exchange Commission (SEC) on August 18, 2023, and declared effective on August 28, 2023.
BioVie focuses on developing drug therapies aimed at chronic debilitating conditions such as liver disease, as well as neurological and neurodegenerative disorders, including Long COVID, Alzheimer's disease, and Parkinson’s disease. The company's drug candidate, bezisterim, targets neuroinflammation and insulin resistance, which are believed to be drivers of Alzheimer's and Parkinson’s diseases. Additionally, BioVie's orphan drug candidate BIV201 is under evaluation for phase 3 clinical testing for liver cirrhosis and ascites, with guidance from the FDA.
The securities described are being offered only by means of a written prospectus. Interested parties can obtain copies of the final prospectus supplement, when available, from ThinkEquity's offices in New York. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful.
Investors are cautioned that this press release contains forward-looking statements that involve risks and uncertainties. These statements are based on the company's current expectations and are subject to change. The actual results may differ materially from those projected due to various factors, including the company's ability to raise capital and the outcome of clinical studies.
The information in this article is based on a press release statement from BioVie Inc.
In other recent news, BioVie Inc., a clinical-stage biopharmaceutical company, has been active in raising capital through stock offerings and advancing its pharmaceutical development. The company completed three significant stock offerings, one for approximately $3.2 million, another for about $6 million, and a third for around $6.7 million, all aimed at bolstering working capital and supporting general corporate purposes.
BioVie has also made substantial progress on the patent front, securing protection for its novel liquid formulation of terlipressin, a drug used to treat complications related to liver cirrhosis, in multiple countries, including Japan, the United States, India, and Chile. This new formulation aims to improve patient treatment, particularly in home care settings.
Furthermore, the company has received approval to proceed with a Phase 2 clinical trial of bezisterim, an investigational drug for the treatment of neurological symptoms associated with long COVID. This approval opens up the possibility of an additional $12.6 million in grant funding from the U.S. Department of Defense.
In corporate developments, BioVie reported the resignation of director Steve Gorlin and has regained compliance with Nasdaq's minimum bid price requirement, following a 1-for-10 reverse stock split of its Class A common stock. These developments highlight BioVie's commitment to pharmaceutical innovation and corporate evolution.
InvestingPro Insights
BioVie Inc.'s recent pricing of its registered direct offering comes at a critical time for the company, as reflected in the latest data from InvestingPro. The company's market capitalization stands at a modest $22.84 million, underscoring its status as a small-cap biopharmaceutical player. This capital raise is crucial, given that BioVie is not currently profitable, with an adjusted operating income of -$32.18 million over the last twelve months as of Q4 2024.
Despite the challenging financial landscape, InvestingPro Tips highlight some positive aspects. BioVie "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues its clinical trials and drug development programs. Additionally, the company has seen a "significant return over the last week," with a 1-week price total return of 8.75%, and a remarkable 1-month return of 138.33%, indicating recent investor optimism.
However, potential investors should note that the stock "generally trades with high price volatility," as evidenced by the stark contrast between short-term gains and longer-term performance. The 1-year price total return stands at -91.03%, reflecting the inherent risks in the biotech sector.
For those considering an investment in BioVie, it's worth noting that InvestingPro offers 11 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable in assessing the potential impact of the recent offering on BioVie's future prospects.
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